Public Tenders and Privatizations in Azerbaijan

4 June 2024by info@acon.az0

Handling the complexities of public tenders and privatizations in Azerbaijan requires specialized legal skills.  At ACON Consulting, we provide complete legal services to help you through these processes. At ACON Consulting, Our team of skilled lawyers offer comprehensive legal services to guide our clients through these processes. Our team provides tailored advice, representation, and support to ensure that your participation in public tenders and privatization projects is smooth and follows all rules. Whether you’re a local business or an international investor, ACON Consulting is your trusted partner for all legal issues related to public tenders and privatizations in Azerbaijan.

What is Public Tenders and Privatization?

Public tenders refer to the competitive process by which the government invites bids for large projects or contracts, ensuring transparency and fairness. Privatization involves transferring ownership of state-owned enterprises or assets to private entities, aiming to increase efficiency and stimulate economic growth. Both processes are essential for building a competitive market economy in Azerbaijan, creating opportunities for businesses and investors.

Types of Tenders

Public Tenders and Privatizations in Azerbaijan

There are several types of tenders that can be declared by different governmental agencies, as well as private organizations. Here are the main types of tenders and the relevant details:

Open Tender (Public Tender)

Open tenders are publicly announced and allow all interested suppliers to submit their proposals, ensuring a competitive and transparent procurement process. Here all terms and conditions are indicated that all applicants can send their offers.

Procedure of open tender in Azerbaijan:
  • Announcement: The tender is publicly announced through official government websites and other media.
  • Registration: Interested suppliers register their intention to participate.
  • Submission of Proposals: Suppliers submit their technical and financial proposals.
  • Evaluation: Proposals are evaluated based on predefined criteria.
  • Award: The contract is awarded to the supplier with the best proposal.

Typically, the process takes around 30-45 days from the announcement to the award.

Document List:
  1. Company registration documents
  2. Tax clearance certificate
  3. Financial statements (last 2-3 years)
  4. Technical proposal
  5. Financial proposal
  6. Relevant experience and past performance records
  7. Compliance with technical specifications

Closed Tender (Restricted Tender)

Closed tenders involve a selective invitation process where only pre-qualified suppliers are invited to participate, ensuring a more controlled and secure procurement environment.

Procedure of Closed Tender in Azerbaijan:
  • Invitation: Only pre-selected suppliers are invited to participate.
  • Submission of Proposals: Invited suppliers submit their proposals.
  • Evaluation: Proposals are evaluated by a tender committee.
  • Award: The contract is awarded based on the best proposal.

The timeline is usually shorter than open tenders, around 20-30 days.

Document List:
  1. Invitation letter
  2. Company registration documents
  3. Tax clearance certificate
  4. Financial statements (last 2-3 years)
  5. Technical proposal
  6. Financial proposal
  7. Relevant experience and past performance records
  8. Compliance with technical specifications

Request for Quotations (Simplified Tender)

Request for Quotations is a simplified and quicker procurement method used for smaller contracts, where price is a key factor, and only quotations are requested from potential suppliers.

Procedure of Simplified Tender in Azerbaijan:
  • Request: Procuring entity sends a request for quotations to potential suppliers.
  • Submission: Suppliers submit their quotations.
  • Evaluation: Quotations are evaluated based on price and compliance.
  • Award: The contract is awarded to the lowest or most advantageous quotation.

This is a quicker process, usually completed within 10-15 days.

Document List:
  1. Company registration documents
  2. Tax clearance certificate
  3. Financial proposal
  4. Compliance with technical specifications

Single-Source Procurement

Single-Source Procurement involves selecting a single supplier without a competitive process, typically used in urgent or highly specialized situations.

Procedure:
  • Selection: A single supplier is selected without a competitive process.
  • Negotiation: Terms and conditions are negotiated directly with the supplier.
  • Award: The contract is awarded based on the negotiated terms.

The timeline can vary but is generally faster than competitive tenders, taking around 10-20 days.

Document List:
  1. Justification for single-source procurement
  2. Company registration documents
  3. Tax clearance certificate
  4. Financial statements (if required)
  5. Technical and financial proposal (if applicable)

Services We Offer Regarding Public Tenders and Privatization

At ACON Consulting, we provide a variety of legal services designed to help clients with public tenders and privatizations. Our services include:

  • Tender Identification and Notification: Regularly monitor and identify relevant tender opportunities for clients. Provide timely notifications about new tenders in their industry.
  • Assessment and Registration: Description of this service is to evaluate clients’ eligibility for specific tenders and assist with the registration process.
  • Document Preparation and Submission: We can help clients prepare all necessary documentation, including technical and financial proposals, and submit them correctly. This will increase the chances of a successful bid by ensuring all documents are accurate and complete.
  • Proposal Writing and Review: Provide professional proposal writing services, including crafting compelling narratives and ensuring compliance with tender specifications. Offer review and feedback on existing proposals.
  • Bid Strategy Consultation: Offer strategic advice on pricing, positioning, and differentiating bids from competitors.
  • Market Research and Analysis: The main aim is to provide detailed market research and analysis to help clients understand the competitive landscape and tailor their bids accordingly.
  • Post-Submission Support: Offer support services after bid submission, including handling queries from the tendering body and assisting with negotiations. 
  • Feedback and Improvement Services: The result is very important in tender, like providing detailed feedback on unsuccessful bids and suggest areas for improvement. This will help clients refine their approach for future tenders, increasing their chances of success.By offering these comprehensive services, we can help our clients navigate the complexities of the tendering process, improve their bid quality, and increase their chances of winning tenders.

Additional Legal Services We Offer

  • Advice on Public Tender Laws and Privatization Procedures: We provide expert advice on the laws governing public tenders and privatizations, guiding you through possible process scenarios and representing you in any disputes that may arise.
  • Structuring Privatization Transactions: Our team assists in structuring transactions to ensure compliance with legal requirements and optimize outcomes for our clients.
  • Negotiations with Privatization Agencies and Public Authorities: We represent your interests in negotiations with relevant agencies and authorities, ensuring your position is effectively communicated and protected.
  • Assistance with Preparing Tender Documentation: We help prepare comprehensive and compliant tender documentation, increasing your chances of success in public tenders.
  • Legal Due Diligence: We conduct thorough legal due diligence on target companies or assets subject to privatization, identifying any potential risks and ensuring informed decision-making.
  • Drafting and Negotiating Privatization and Investment Agreements: Our lawyers draft and negotiate agreements to safeguard your interests and facilitate smooth transactions.

Public Tenders and Privatizations Legislation in Azerbaijan

The legal framework for public tenders and privatizations in Azerbaijan is designed to promote transparency, competitiveness, and fairness. The Law on Public Procurement regulates the tendering process, setting out the rules and procedures for public tenders. The privatization process is governed by the Law on Privatization of State Property, which outlines the methods and principles for transferring state assets to private ownership. ACON Consulting stays up-to-date with legislative changes and provides clients with the latest legal insights, ensuring compliance and strategic advantage in all tender and privatization activities.

In Azerbaijan, public procurement and tenders are overseen by the State Service for Antimonopoly and Consumer Market Control under the Ministry of Economy.

Conclusion

Partner with ACON Consulting to confidently navigate the legal landscape of public tenders and privatizations in Azerbaijan. Our expertise and dedication to excellence ensure your legal needs are handled with professionalism and precision. Contact us today to get started!

Read More:

  1. Branch Registration in Azerbaijan – https://acon.az/branch-registration-in-azerbaijan/
  2. Start a Business in Azerbaijan– https://acon.az/business-in-azerbaijan 
  3. Trademak Registration in Azerbaijan – https://acon.az/trademark-registration-in-azerbaijan

Leave a Reply

Your email address will not be published. Required fields are marked *

ACONOffice
Reach out or visit our office to access ACON's exceptional services for your needs
AZ1025, Azure Business Centre, Ofis 165B, Baku, Azerbaijan
GET IN TOUCHACON Social Links
Follow us on social media to stay updated and connected with ACON
ACONOffice
Reach out or visit our office to access ACON's exceptional services for your needs
GET IN TOUCHACON Social Links
Follow us on social media to stay updated and connected with ACON

× MESSAGE US!